Liquidity risk

Possible penalty in the price of a security, in the event that it is necessary to undo the investment in order to recover the capital quickly. In general, it can be said that listed securities are more liquid than those that are not listed, as there is more chance of finding counterparties to a reasonable price (sometimes unlisted customers incorporate some type of clause or liquidity guarantee by the issuer or a third party, although there is no transparency regarding the price). The less liquid a security is, the greater the decrease in the price that the investor must accept to sell their securities. In cases of extreme illiquidity, it may become impossible to recover the investment at the desired time.